Finance (Covid-19 and Miscellaneous Provisions) Act 2021

1. Definitions

1. In this Act—

“Act of 1997” means the Taxes Consolidation Act 1997;

“Act of 1999” means the Stamp Duties Consolidation Act 1999;

“Act of 2010” means the Value-Added Tax Consolidation Act 2010;

“Act of 2020” means the Emergency Measures in the Public Interest (Covid-19) Act 2020.

2. Amendment of section 28B of Act of 2020

2. (1) Section 28B of the Act of 2020 is amended—

(a) in subsection (1), by the substitution of the following definition for the definition of “qualifying period”:

“‘qualifying period’ means the period commencing on 1 July 2020 and expiring on 31 December 2021 or on such later day than 31 December 2021 as the Minister may specify in an order made by him or her under subsection (21)(a);”,

(b) in subsection (2A)—

(i) by the substitution of “the period from 1 January 2021 to 30 June 2021 (in this subsection referred to as ‘the second specified period’)” for “the period from 1 January 2021 to the date on which the qualifying period expires”, and

(ii) in paragraph (a)(i)(I), by the substitution of “in the second specified period” for “in the period from 1 January 2021 to 30 June 2021 (in this subsection referred to as ‘the second specified period’)”,

(c) by the insertion of the following subsection after subsection (2A):

“(2B) Subject to subsections (4) and (5), this section shall apply to an employer for the period from 1 July 2021 to the date on which the qualifying period expires where—

(a) (i) in accordance with guidelines published by the Revenue Commissioners under subsection (20)(a), the employer demonstrates to the satisfaction of the Revenue Commissioners that, by reason of Covid-19 and the disruption that is being caused thereby to commerce—

(I) there will occur in the period from 1 January 2021 to 31 December 2021 (in this subsection referred to as ‘the third specified period’) at least a 30 per cent reduction, or such other percentage reduction as the Minister may specify in an order made by him or her under subsection (21)(b), in either the turnover of the employer’s business or in the customer orders being received by the employer by reference to the period from 1 January 2019 to 31 December 2019 (in this subsection referred to as ‘the third corresponding period’),

(II) in the case where the business of the employer has not operated for the whole of the third corresponding period but the commencement of that business’s operation occurred no later than 1 November 2019, there will occur in the part of the third specified period, which corresponds to the part of the third corresponding period in which the business has operated, at least a 30 per cent reduction, or such other percentage reduction as the Minister may specify in an order made by him or her under subsection (21)(b), in either the turnover of the employer’s business or in the customer orders being received by the employer by reference to that part of the third corresponding period, or

(III) in the case where the commencement of the operation of the employer’s business occurred after 1 November 2019, the nature of the business is such that the turnover of the employer’s business or the customer orders being received by the employer in the third specified period will be at least—

(A) 30 per cent, or

(B) such other percentage as the Minister may specify in an order made by him or her under subsection (21)(b),

less than what that turnover or those customer orders, as the case may be, would otherwise have been had there been no disruption caused to the business by reason of Covid-19,

or

(ii) the employer’s name is entered in the register established and maintained under section 58C of the Child Care Act 1991,

and

(b) the employer satisfies the conditions specified in subsection (3).”,

(d) in subsection (3), by the substitution of “subsection (2)(b), (2A)(b) or (2B)(b)” for “subsection (2)(b) or (2A)(b)”,

(e) in subsection (5)—

(i) by the substitution of “by virtue of subsection (2) (apart from paragraph (a)(ii) thereof), (2A) (apart from paragraph (a)(ii) thereof) or (2B) (apart from paragraph (a)(ii) thereof)” for “by virtue of subsection (2) (apart from paragraph (a)(ii) thereof) or (2A) (apart from paragraph (a)(ii) thereof)”, and

(ii) in paragraph (b), by the substitution of “subsection (2)(a)(i), (2A)(a)(i) or (2B)(a)(i)” for “subsection (2)(a)(i) or (2A)(a)(i)”,

(f) in subsection (8), by the substitution of “30 September 2021” for “31 January 2021” in both places where it occurs,

(g) in subsection (17), by the substitution of “subsection (2), (2A) or (2B)” for “subsection (2) or (2A)” in both places where it occurs,

(h) in subsection (20)(a), by the substitution of “subsection (2), (2A) or (2B)” for “subsection (2) or (2A)”, and

(i) in subsection (21)—

(i) in paragraph (a)—

(I) by the substitution of “31 December 2021” for “31 March 2021”, and

(II) by the substitution of “30 June 2022” for “30 June 2021”,

and

(ii) in paragraph (b), by the substitution of “subsection (2)(a)(i), (2A)(a)(i) or (2B)(a)(i)” for “subsection (2)(a)(i) or (2A)(a)(i)”.

(2) Subsection (1) shall be deemed to have come into operation on 1 April 2021.

3. Amendment of section 484 of Act of 1997

3. (1) Section 484 of the Act of 1997 is amended in subsection (2)(a)(ii) by the substitution of “30 September 2021” for “31 March 2021”.

(2) Subsection (1) shall be deemed to have come into operation on 1 April 2021.

4. Amendment of section 485 of Act of 1997

4. (1) Section 485 of the Act of 1997 is amended—

(a) in subsection (1)—

(i) in paragraph (d) of the definition of “Covid restrictions period end date”, by the substitution of “the date on which the specified period shall expire” for “31 March 2021”, and

(ii) in the definition of “specified period”, by the substitution of “30 September 2021” for “31 March 2021”,

(b) in subsection (2)(b)(iv), by the substitution of “the date on which the specified period shall expire” for “31 March 2021”,

(c) in subsection (3)(b), by the substitution of “30 September 2021” for “31 March 2021”,

(d) in subsection (7)—

(i) in paragraph (a)(i)(I), by the insertion of “or, where the claim relates to a period specified in subsection (8)(b)(ii)(I) or (II) or to any full week falling within the period beginning on 5 July 2021 and ending on 18 July 2021, 20 per cent,” after “10 per cent”,

(ii) in paragraph (a)(i)(II), by the insertion of “or, where the claim relates to a period specified in subsection (8)(b)(ii)(I) or (II) or to any full week falling within the period beginning on 5 July 2021 and ending on 18 July 2021, 10 per cent,” after “5 per cent”,

(iii) in paragraph (a)(ii)(I), by the insertion of “or, where the claim relates to a period specified in subsection (8)(b)(ii)(I) or (II) or to any full week falling within the period beginning on 5 July 2021 and ending on 18 July 2021, 20 per cent,” after “10 per cent”,

(iv) in paragraph (a)(ii)(II), by the insertion of “or, where the claim relates to a period specified in subsection (8)(b)(ii)(I) or (II) or to any full week falling within the period beginning on 5 July 2021 and ending on 18 July 2021, 10 per cent,” after “5 per cent”, and

(v) in paragraph (b), by the insertion of “or, where the claim relates to a period specified in subsection (8)(b)(ii)(II), €10,000 per week” after “€5,000 per week”,

and

(e) in subsection (8), by the substitution of the following paragraph for paragraph (b):

“(b) (i) Where no part of the week immediately following the date on which the applicable business restrictions provisions ceased to be in operation in respect of a relevant business activity (referred to in this paragraph as the ‘restart week’) would otherwise form part of a Covid restrictions period or a Covid restrictions extension period, a qualifying person to whom paragraph (a) applies may elect to treat a period specified in any of clauses (I) to (III) of subparagraph (ii) as a Covid restrictions extension period and may make a claim under this section in respect of that period.

(ii) The period that a qualifying person may elect to treat as a Covid restrictions extension period for the purposes of subparagraph (i) shall be—

(I) in a case where the restart week commences on or after 29 April 2021 and before 2 June 2021, a period of 2 weeks from the date on which the restart week commences,

(II) in a case where the restart week commences on or after 2 June 2021 and before the date on which the specified period shall expire and the qualifying person has not elected to treat a period specified in clause (I) or this clause as a Covid restrictions extension period for the purposes of a claim under this section in respect of the relevant business activity concerned, a period of 3 weeks from the date on which the restart week commences, and

(III) in all other cases, a period of one week from the date on which the restart week commences.”.

(2) Subsection (1) shall be deemed to have come into operation—

(a) as respects paragraphs (a) to (c) thereof, on 1 April 2021, and

(b) as respects paragraphs (d) and (e) thereof, on 29 April 2021.

5. Business Resumption Support Scheme

5. The Act of 1997 is amended—

(a) by the insertion of the following section after section 485:

“Business Resumption Support Scheme

485A. (1) In this section—

‘application period’ means the period commencing on 1 September 2021 and ending on 30 November 2021;

‘approved body of persons’ has the same meaning as in section 235;

‘chargeable period’ has the same meaning as in section 321(2);

‘charity’ has the same meaning as in section 208;

‘partnership trade’ has the same meaning as in section 1007;

‘precedent partner’, in relation to a partnership and a partnership trade, has the same meaning as in section 1007;

‘relevant business activity’ means, subject to subsection (2), a trade carried on by a person either solely or in partnership;

‘specified period’ means the period commencing on 1 September 2020 and ending on 31 August 2021;

‘tax’ means income tax or corporation tax;

‘tax reference number’ has the same meaning as in section 885;

‘trade’ means a trade any profits or gains arising from which is chargeable to tax under Case I of Schedule D.

(2) (a) Where a charity carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D but for section 208(2)(b), that trade shall be regarded as a relevant business activity for the purposes of this section.

(b) Where an approved body of persons carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D but for section 235(2), that trade shall be regarded as a relevant business activity for the purposes of this section.

(3) (a) In this section—

‘average weekly turnover from the established relevant business activity’ means—

(i) in the case of an established relevant business activity commenced before 26 December 2019, the average weekly turnover of the person, carrying on the activity, in respect of the established relevant business activity for the period—

(I) commencing on 1 January 2019 or, if later, the date on which the person commenced the relevant business activity, and

(II) ending on 31 December 2019,

and

(ii) in the case of an established relevant business activity commenced on or after 26 December 2019, the average weekly turnover of the person, carrying on the activity, in respect of the established relevant business activity for the period—

(I) commencing on the date on which the person commenced the relevant business activity, and

(II) ending on 15 March 2020;

‘average weekly turnover from the new relevant business activity’ means the average weekly turnover of the person, carrying on the activity, in respect of the new relevant business activity in the period commencing on the date on which the person commenced the relevant business activity and ending on 31 August 2020;

‘established relevant business activity’ means, in relation to a person, a relevant business activity commenced by that person before 10 March 2020;

‘new relevant business activity’ means, in relation to a person, a relevant business activity commenced by that person on or after 10 March 2020 and before 26 August 2020;

‘reference turnover amount’ means—

(i) where a person carries on an established relevant business activity, an amount determined by the formula—

A x B

where—

A is the average weekly turnover from the established relevant business activity, and

B is 52,

or

(ii) where a person carries on a new relevant business activity, an amount determined by the formula—

A x B

where—

A is the average weekly turnover from the new relevant business activity, and

B is 52;

‘turnover amount for the specified period’ means, in relation to a relevant business activity, the turnover of the person carrying on the activity, in respect of the relevant business activity, in the specified period.

(b) Subject to subsection (4), this section shall apply to a person who—

(i) carries on a relevant business activity in relation to which the turnover amount for the specified period is an amount that is 25 per cent (or less) of the reference turnover amount, and

(ii) satisfies the conditions specified in subsection (4),

(hereafter referred to in this section as a ‘qualifying person’).

(4) The conditions referred to in subsection (3)(b)(ii) are that—

(a) the person has logged on to the online system of the Revenue Commissioners (in this section referred to as ‘ROS’) and applied on ROS to be registered as a person to whom this section applies and as part of that registration provides such particulars as the Revenue Commissioners consider necessary and appropriate for the purposes of registration and which particulars shall include those specified in subsection (10),

(b) the person completes an electronic claim form on ROS containing such particulars as the Revenue Commissioners consider necessary and appropriate for the purposes of determining the claim and which particulars shall include those specified in subsection (10),

(c) the person makes a declaration to the Revenue Commissioners through ROS that the person satisfies the conditions in this section to be regarded as a qualifying person,

(d) the person has complied with any obligations that apply to that person in respect of the registration for, and furnishing of returns relating to, tax, within the meaning of section 2 of the Value-Added Tax Consolidation Act 2010,

(e) the person is throughout the application period eligible for a tax clearance certificate, within the meaning of section 1095, to be issued to the person,

(f) at the commencement of the application period, the person—

(i) is, in the course of carrying on a relevant business activity, making supplies of goods or services to customers of the relevant business activity, and

(ii) intends to continue to make such supplies,

and

(g) the person is not entitled to make a claim under section 485 in respect of any week in which 1 September 2021 falls.

(5) Subject to subsection (7), a qualifying person may make a claim under this section and shall be entitled to an amount equal to the lower of—

(a) 3 times the amount determined by the formula—

(A x 10 per cent) + (B x 5 per cent)

where—

A is the lower of €20,000 and the AWT,

B is the amount of the AWT, if any, in excess of €20,000, and

AWT is the amount of the person’s average weekly turnover from the established relevant business activity or average weekly turnover from the new relevant business activity, as the case may be,

and

(b) €15,000,

and any amount payable under this section is referred to in this section as an ‘advance credit for trading expenses’.

(6) A claim made under this section in respect of an advance credit for trading expenses shall, subject to subsection (19)(c), be made within the application period.

(7) (a) Where a relevant business activity in respect of which a person is a qualifying person is carried on as a partnership trade, then any claim made under this section for an advance credit for trading expenses in respect of the relevant business activity shall be made by the precedent partner on behalf of the partnership and each of the partners in that partnership and the maximum amount of any such claim made in respect of the relevant business activity shall not exceed the lower of the amounts specified in subsection (5)(a) or (b), as the case may be.

(b) Where a claim is made under this section by a precedent partner for an advance credit for trading expenses in respect of a relevant business activity carried on as a partnership trade then—

(i) for the purposes of subsections (11) and (12), each partner shall be deemed to have claimed, in respect of that partner’s several trade (within the meaning of section 1008), a portion of the advance credit for trading expenses calculated as—

A x B

where—

A is the advance credit for trading expenses claimed by the precedent partner, and

B is the partnership percentage on 1 September 2021,

(ii) the precedent partner shall, in respect of such claim, provide a statement to each partner in the partnership containing the following particulars—

(I) the partnership name and its business address,

(II) the amount of advance credit for trading expenses claimed by the precedent partner on behalf of the partnership and each partner,

(III) the profit percentage for each partner, and

(IV) the portion of the advance credit for trading expenses allocated to each partner,

(iii) for the purposes of subsection (13), references to a person making a claim shall be taken as references to the precedent partner making the claim on behalf of the partnership and each of its partners, and

(iv) for the purposes of subsection (14), section 1077E shall apply as if references to a person were references to each partner and the references to a claim were a reference to a claim deemed to have been made by each partner under subparagraph (i).

(8) Any reference to ‘turnover’ in this section means any amount recognised as turnover in a particular period of time in accordance with the correct rules of commercial accounting, except for any amount recognised as turnover in that particular period of time due to a change in accounting policy.

(9) Where a person makes a claim for an advance credit for trading expenses under this section, in computing the amount of the profits or gains of the trade, to which the relevant business activity relates, for the chargeable period in which the claim is made, the amount of any disbursement or expense which is allowable as a deduction, having regard to section 81, shall be reduced by the amount of the advance credit for trading expenses and the advance credit for trading expenses shall not otherwise be taken into account in computing the amount of the profits or gains of the trade for that chargeable period.